Nasdaq reportedly in settlement talks over flubbed Facebook IPO
- Share via
Nasdaq soon may pay a penalty for its flawed handling of Facebook Inc.’s initial public offering.
But it may not be paying all that much.
The Wall Street Journal reported that Nasdaq is in settlement talks with the Securities and Exchange Commission to pay about $5 million to resolve the agency’s eight-month investigation of Nasdaq’s technological miscues in the closely watched IPO.
That would be a fraction of the estimated $500 million lost by brokers and investors, according to the Journal.
Nasdaq is in separate negotiations with customers about potential reimbursement for losses incurred in the May 18 offering.
Among other snafus, Nasdaq failed to send trade confirmations to investors, leaving them confused about whether they bought shares and the prices they paid.
ALSO:
Facebook IPO falls short of the hype
Facebook stock price could be hit by torrent of new shares
Small investors may have chance to get shares of Facebook IPO
Follow Walter Hamilton on Twitter @LATwalter
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
